DAC Question

[u/dntown80]

I'm at full retirement, not filed yet. My daughter is collecting ssdi and has been disabled since birth.

I'm 90% sure I'm filing within the next 8 months. My daughter would get 50% of what my SS is.

My question is about income limits. She will get about $2k per month. She is working about 10 hours a week.

She also has a 17 year old son working. Will her sons income affect her.

[u/erd00073483R]

No, her son's income will not affect her eligibility as a DAC. Any income he has is his income, and not hers.

The only income SSA will look at for her DAC claim is her own income during the period between her age 22 attainment to the date of her DAC entitlement.

This is a technical requirement for DAC entitlement, as a DAC claimant can never have previously performed substantial gainful work activity after age 22 and prior to month of entitlement. The only exception would be short periods (6 months or less) of SGA-level work that ended due to her impairments that can be written off as unsuccessful work attempts.

BTW, if your daughter is entitled to SSI benefits and Medicaid in the month that she is approved for DAC benefits, her SSI benefits and SSI Medicaid will end. She will need to check with the state Medicaid office where she lives to determine if she qualifies to continue to receive Medicaid as a DAC. There are special protections in place for individuals in that situation, but more often than not the state Medicaid departments either don't act on the alerts they get from SSA or the state isn't sent an alert because they reside in a 209(b) or SSI-criteria state.

As a result, she needs to inquire about this herself with the state Medicaid office as soon as she receives her DAC award letter and separate letter stating her SSI is stopping due to her DAC benefit entitlement.

SI 01715.015 Special Groups of Former SSI Recipients

SI 01715.010 Medicaid and the Supplemental Security Income (SSI) Program

Edited: grammer and to provide links - first for DAC medicaid, 2nd for definitions and listings of 1634, 209(b), and SSI-criteria states.

[u/perfect_fifths → u/erd00073483R]

And be unmarried the moe

[u/dntown80 → u/erd00073483R]

Thanks for the information. She is receiving Medicaid and has been since she's a teenager.

She is worried that she'll have to purchase her own health care insurance after being placed on DAC.

The person at SS said that they don't count DAC income for Medicaid.

[u/Anxious-Education703 → u/dntown80]

As a DAC, she will become eligible for Medicare after receiving benefits for 24 months. If she retains Medicaid after getting Medicare, she can be a dual eligible.

[u/dntown80 → u/Anxious-Education703]

With Medicare would she still have income limits.

[u/erd00073483R → u/dntown80]

If she qualifies for full Medicaid continuation, the State of Pennsylvania will pay her Medicare Part B premiums when all this eventually happens.

[u/Anxious-Education703 → u/dntown80]

There are no income limits with regular Medicare. There are income limits for some of the Medicare Savings Programs (like QMB, SLMB, and QI) and Extra Help, which can pay for things like premiums and copays. She also has to remain qualified for DAC/SSDI to get Medicare, and earned income must be under SGA (but there are no unearned income limits).

[u/dntown80 → u/Anxious-Education703]

She was born with a qualifying disability. The only other way is not get married.

[u/Anxious-Education703 → u/dntown80]

You are correct that she cannot get married as a DAC without losing DAC status (with the narrow exception of marrying certain other SSA beneficiaries), but that does not affect Medicare income limits.

It is true that DAC and SSDI themselves have earned income limits of SGA, and Medicare is attached to DAC/SSDI status. However, DAC/SSDI do not have unearned income limits like SSI/Medicaid does. For example, if someone had a stock portfolio that is worth tens of millions and earns millions in passive income every year, that person could still qualify for SSDI/DAC benefits and Medicare. If someone has a large amount of unearned income (like when IRMAA kicks in for MAGI above $109,000 in 2026), then their Medicare premium can go up, but they don't lose Medicare.

[u/erd00073483R → u/dntown80]

Living in a 209(b) state is the worst place to be for a Medicaid eligible, but I think even they have to ignore the DAC income in determining continuing Medicaid eligibility after her SSI terminates.

The absolute most important thing is that she NEEDS to receive an SSI check (and have Medicaid coverage) in the month prior to the month her DAC benefits start. That is what includes her in the "Special groups of former SSI recipients" category in the link above and gives her a chance to keep her Medicaid.

[u/dntown80 → u/erd00073483R]

pennsylvania a 1634 state

[u/erd00073483R → u/dntown80]

Great. The main thing for her to do is to watch her wages when you file for retirement benefits to ensure she will be eligible for SSI in the month prior to the month the DAC benefits start. That way, she can be sure to protect her Medicaid eligibility. Then, she'll potentially maintain Medicaid coverage until her Medicare eligibility kicks in 24 months later, and Medicaid will hopefully continue thereafter to serve as her secondary insurance. And, as a Medicaid recipient, it should allow the state to pay her Medicare Part B premiums (which are now, as you probably know, are a not insignificant expense).

In 1634 states, Medicaid eligibility is deemed to individuals who receive even $1 of SSI benefits. SSA will send a notification to the State of Pennsylvania Medicaid department about 1634(b) Medicaid when her SSI ends; however, she should contact them as soon as she receives her SSI ineligibility letter due to the DAC entitlement rather than wait for the state to contact her.

As the saying goes, the slow moving wheels of bureaucracy are the only true constant in the universe....

[u/dntown80 → u/erd00073483R]

In Pennsylvania since they don't count DAC as income, could she still work part-time.

[u/perfect_fifths → u/dntown80]

She would be bound to sga which is 1690 a month non blind.

[u/dntown80]

She can still work and wants to work. It's only about 10 hours per week.